overview of planning for sustinability for water and ... · • for example, implement consumer...

US EPA WEBCAST SERIES FOR WATER AND WASTEWATER UTILITIES

June 12, 2012

OVERVIEW OF PLANNING FOR

SUSTAINABILITY FOR WATER AND

WASTEWATER UTILITIES

Planning for Sustainability: A Handbook for Water and Wastewater Utilities |

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Webcast Agenda

• Overview of Planning for Sustainability for Water and Wastewater Utilities, Jim Horne, EPA Office of Water

• Utility Perspective: Planning for Optimal Utility Performance in a Sustainable, Cost Effective, Manner, Andy Kricun, Executive Director, Camden County Municipal Utility Authority

• Utility Perspective: Integrating Sustainability Principles into Solids Management Planning, Tom Sigmund, Executive Director, Green Bay Metropolitan Sewerage District

• Questions and Answers


http://water.epa.gov/infrastructure/sustain/upload/EPA-s-Planning-for-Sustainability-Handbook.pdf













Handbook Overview

• Background and Purpose

• Handbook Development Process

• Approach and Scope

• Benefits of Planning for Sustainability

• Core Elements and Planning Steps


Background

• For the past several years EPA has undertaken a number of efforts to promote the sustainability of water infrastructure, utility operations, and communities

• These efforts are embodied in our Clean Water and Safe Drinking Water Infrastructure Sustainability Policy, issued in October, 2010

• In discussions as the Policy was developed, stakeholders repeatedly emphasized the importance of up-front planning to guide effective infrastructure decisions, before the infrastructure solution is decided

• Effective planning is also closely tied to our 2007 partnership with leading associations to promote effective utility management based on the Attributes of Effectively Managed Utilities and Keys to Management Success

• Finally , the Handbook can also help utilities focusing heavily on climate change through EPA’s Climate Ready Water Utilities Initiative– more information is at \http://water.epa.gov/infrastructure/watersecurity/climate/upload/crwu_brochure_v15_lowres_1.pdf


Purpose

• The Handbook is organized around a series of Core Elements to help utilities consider several aspects of sustainability in their planning, including:

• Setting utility sustainability goals and objectives that also support relevant community goals;

• Analyzing a range of alternatives, including green infrastructure and other innovative approaches, based on full life-cycle costs; and

• Implementing a financial strategy, including adequate rate structures, to ensure the alternatives selected are sufficiently funded, operated, maintained, and replaced over time.


Handbook Development Process

• Initiated in March 2010

• Developed with input from utility and other stakeholders—from initial concept to final review • Water and wastewater utility representatives, including large and

small systems

• Water, wastewater, and public works associations (WEF, AWWA, AMWA, NACWA, APWA, ASDWA, APA, NRWA)

• State SRF officials

• Handbook published in February 2012


Approach and Scope

• Helps utilities enhance their existing planning through core elements and steps—not a new planning guidance

• Describes a process to build sustainability into utility infrastructure planning and investments – does not dictate what those specific investment decisions should be

• Is relevant for:

• Water, wastewater, and stormwater utilities

• A range of planning efforts and timeframes

• Utilities facing multiple compliance challenges

• New and replacement infrastructure decisions and operational changes

• Small, medium, and large utilities in rural and urban areas


Benefits of Planning for Sustainability

• Minimize costs by optimizing investment choices, operating water and wastewater systems more efficiently, and pursuing cost-effective investment and management strategies.

• Maximize results of investments to ensure a continuing source of water, treatment, and discharge capacity, as well as financing capability.

• Improve the ability to analyze a range of alternatives, including both traditional and non-traditional infrastructure alternatives.

• Engender greater support for the utility by recognizing community values and sustainability priorities.

• Ensure that financial and revenue strategies are adequate to finance, operate, maintain, and replace essential infrastructure throughout its operational life, while appropriately considering the needs of disadvantaged households.


Core Planning Elements

4. Financial Strategy

Develop a financial strategy

reflecting full lifecycle costs and

adequate revenues to

ensure the system is sufficiently

funded, maintained, and

replaced over time.

3. Alternatives Analysis

Based on sustainability objectives, set

explicit and consistent

evaluation criteria to analyze a range

of alternatives.

2. Objectives and Strategies

Establish objectives and strategies for

each sustainability

goal

1. Goal-Setting

Consider goals that reflect utility and community

sustainability priorities


Example: Energy Efficiency

4. Financial Strategy

Utility revenue and borrowing strategy ensures sustainable financing of new projects, taking advantage of lower energy costs

3. Alternatives Analysis

Utility evaluates all projects, in part, on their lifecycle energy costs (e.g., installation of high efficiency heat pumps) and their relative ability to meet the 25% energy use reduction objective

2. Objectives and Strategies

Utility sets objective of reducing energy use by 25% in 5 years; it conducts an energy audit to determine its baseline energy use and identifies potential projects to meet its objective

1. Goal-Setting

Utility seeks to reduce its energy use consistent with the community’s energy efficiency program


Core Planning Elements

• For each element, the Handbook describes: • The element and how it enhances existing planning approaches

• Key steps to implement the element

• Approaches to implement the element on a smaller scale

• Diagnostic questions for gauging how thoroughly an element has been addressed

• One or more illustrative examples


Planning Element 1: Goal Setting—Establish Sustainability Goals

that Reflect Utility and Community Priorities

Step 1. Identify sustainability priorities and potential opportunities for the utility

Step 2. Identify community sustainability priorities

Step 3. Engage the community about its sustainability priorities

Step 4. Identify and document sustainability goals


Potential Sustainability Goals

• Improve compliance

• For example, establish collaborative partnerships with neighboring utilities to increase or maintain capacity or to share information and expertise.

• Reduce energy cost

• For example, invest in more energy efficient equipment or explore operational changes that can enhance energy optimization.

• Reduce overall infrastructure costs to communities

• For example, partner with other community agencies to coordinate infrastructure projects such as road repairs with service line replacement rain gardens.

• Extend the projected adequacy of current water supplies

• For example, implement consumer water conservation programs, implement water metering, fix distribution system leaks, or make use of reclaimed water.

• Address wet weather impacts

• For example, implement non-traditional infrastructure alternatives such as green infrastructure with integrated stormwater and combined sewer overflow control.


Planning Element 2: Objectives and Strategies—Establish

Objectives and Strategies for Each Sustainability Goal

Step 1. Identify sustainability objectives

Step 2. Ensure that objectives are SMART

Step 3. Analyze baseline performance

Step 4. Identify key strategies

Step 5. Document objectives, baselines, and strategies


Objectives, Baselines, and Strategies

Leve

l of

Pe

rfo

rma

nce

Baseline: Current

Performance Level

Objective: Desired Level of Performance

Strategies: Move Utility from Current to Desired Performance Level

Low

High

Illustration of Objective, Baseline, and StrategiesExample

Sustainability goal: manage runoff effectively in wet

weather events using green infrastructure

Objective: Reduce projected wet weather combined

sewer collection system capacity needs by 10

percent through green infrastructure.

Baseline: Current CSO capacity needs given historical

and anticipated precipitation event flows.

Potential Strategies: Green infrastructure

alternatives and deployment options that will meet

the 10 percent objective.


Step 6. Document the alternatives analysis

Planning Element 3: Alternatives Analysis—Analyze a Range

of Alternatives Based on Consistent Criteria

20

Step 1. Identify alternatives

Step 2. Develop sustainability criteria

Step 3. Assess the benefits of each alternative

Step 4: Assess the full lifecycle costs of each alternative

Step 5. Compare and select alternatives


Examples of Sustainability Criteria

• Ecological and economic impacts (e.g., the extent to which projects create habitat, green space, or recreation opportunities)

• Cost-effectiveness based on an assessment of full lifecycle costs.

• Ability to improve system reliability

• Ability to meet regulatory requirements

• Preference for treatment or operational functions that rely on natural systems for lower lifecycle operating costs through reduced energy and chemical inputs

• Reduced reliance on the energy grid through greater energy efficiency or self-generation of energy.

• The extent to which projects focus on sustainability of infrastructure in a utility’s existing service area.


Process for Using a “Scorecard” Approach to Assess

Alternatives

1. Identify criteria 2. Establish a scale (e.g. -3 to +3) for

each criterion

3. Assign a weighting factor to each

criterion

4. Score alternatives for all criteria

5. Multiply each score by the

criteria’s weighting factor

6. Sum weighted scores across all

criteria

7. Identify alternative with the highest calculated

score


Planning Element 4: Financial Strategy—Ensure that

Investments are Sufficiently Funded, Operated, Maintained,

and Replaced over Time

23

Step 1: Account fully for all project capital costs

Step 2: Account fully for operations and maintenance costs

Step 3: Account for the impacts new projects may have on overall utility system costs and revenues

Step 4: Develop a capital financing strategy

Step 5: Determine current revenue adequacy and develop future revenue strategy


Financial Tools and Resources

EPA FACT Tool

Boise State Financial Dashboard

EPA STEP Guides


Jim Horne

EPA Office of Wastewater Management

[email protected]

(202) 564-0571

mailto:[email protected]


Questions and Answers

Jim Horne, EPA Office of Wastewater Management

[email protected]

Andy Kricun, Camden County Municipal Utility Authority

[email protected]

Tom Sigmund, Green Bay Metropolitan Sewerage District

[email protected]





Future Webcasts on Planning for Sustainability

• Community Consultation for Sustainability Planning (September 2012)

• Incorporating Sustainability Considerations into Alternatives Analysis (December 2012)

• Ensuring Financial Sustainability (February 2013)



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